3 utilities struggle for power pact.(Pacific Gas and Electric, Souther California Edison, San Diego Gas and Electric Co.)(Brief Article)

Pacific Gas & Electric Co. and two other utilities are trying to wrestle control of a $147 million energy contract from the state's two major university systems now that Enron Corp. has said it probably won't be able to continue providing electricity to the campuses.

The utilities want the California Public Utilities Commission to return the 19 California State University and seven University of California campuses to their control if Enron drops its contract with the schools as expected.

Houston-based Enron has filed for Chapter 11 bankruptcy protection after reports it hid various debts from auditors. Local schools affected include San Jose State University and the University of California at Santa Cruz. The ruling could raise the two school systems' energy costs by 40 percent, school officials say.

The universities' existing four-year contract with Enron allows the energy provider to shift them to another direct-access provider should Enron be unable to continue service, says University of California spokesman Chuck McFadden.

"We maintain if that happens, the contracts remain valid and we don't need any permission to change," Mr. McFadden says. The contract expires in 2002.

The CPUC will look into Enron's agreement with the university systems as part of a larger investigation concerning Enron's business practices in California, says CPUC spokeswoman Sherry Inouye. Hearings are scheduled to begin Jan. 7.

The contracts could be worth more than $147 million annually to PG&E, Southern California Edison and San Diego Gas & Electric Co. The transfer would add roughly $35 million to the University of California and California State University energy costs.